Gilead Sciences (GILD) · Pharmaceuticals
Gilead Sciences Q2 2026 earnings: summary, key numbers & outlook
Results filed 4 Aug 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Total second quarter 2026 revenues increased 10% to $7.8 billion, while diluted loss per share was $(8.45) and non-GAAP diluted loss per share was $(6.75).
Gilead's revenue rose 10% to $7.8 billion, led by HIV, Trodelvy and Livdelzi. HIV sales grew 12% to $5.7 billion, helped by Descovy and the new Yeztugo PrEP product. Product sales excluding Veklury also rose 10%. The company still posted a diluted loss of $(8.45) per share, because $11.2 billion of acquired IPR&D expenses for the Arcellx, Tubulis and Ouro Medicines deals hit the quarter. Operating cash flow was $3.6 billion.
Management raised its 2026 product sales excluding Veklury guidance to $29,800 to $30,100 million and cut its Veklury expectation to about $300 million. Full-year non-GAAP diluted loss per share is now expected at $(0.65) to $(0.30). The main tension is the deal spending. Cash fell to $3.2 billion from $10.6 billion at year-end, and Cell Therapy sales kept falling amid competition.
Key numbers
- Total revenues · GAAP
- $7.8 billion
- Net (loss) income · GAAP
- -$10.5B
- Diluted (loss) earnings per share · GAAP
- $(8.45)
- Non-GAAP diluted (loss) EPS · non-GAAP
- $(6.75)
- Product gross margin · GAAP
- 79.3%
- Non-GAAP product gross margin · non-GAAP
- 86.9%
- Operating (loss) income · GAAP
- -$10.4B
- Operating margin · GAAP
- (133.2)%
up 10% from a year ago
compared with $1,960 a year ago
compared to $1.56 in the same period in 2025
compared to $2.01 in the same period in 2025
compared to 78.7% in the same period in 2025
flat versus the same period in 2025
compared with 2,474 a year ago
compared with 34.9% a year ago
| Segment or metric | Value | Change |
|---|---|---|
| HIV product sales | $5.7 billion | up 12% |
| Biktarvy | $3.8 billion | up 7% |
| Descovy | $967 million | up 48% |
| Yeztugo | $232.0M | compared with 15 a year ago |
| Trodelvy | $457 million | up 26% |
| Liver Disease portfolio | $877 million | up 10% |
| Livdelzi | $167.0M | compared with 78 a year ago |
| Cell Therapy | $417 million | down 14% |
Where each number comes from
- Total revenues: “Total second quarter 2026 revenues increased 10% to $7.8 billion compared to the same period in 2025, primarily driven by:”
- Net (loss) income: “Net (loss) income | $(10,496) | $1,960 | $(8,475) | $3,275”
- Diluted (loss) earnings per share: “Diluted (loss) earnings per share (“EPS”) was $(8.45) in the second quarter 2026 compared to $1.56 in the same period in 2025.”
- Non-GAAP diluted (loss) EPS: “Non-GAAP diluted (loss) EPS was $(6.75) in the second quarter 2026 compared to $2.01 in the same period in 2025.”
- Product gross margin: “Product gross margin remained relatively flat at 79.3% in the second quarter 2026 compared to 78.7% in the same period in 2025.”
- Non-GAAP product gross margin: “Non-GAAP product gross margin also remained flat at 86.9% in the second quarter 2026 compared to the same period in 2025.”
- Operating (loss) income: “Operating (loss) income | (10,394) | 2,474 | (7,808) | 4,711 Interest expense | 247 | 254”
- Operating margin: “Operating margin | (133.2)% | 34.9% | (52.9)% | 34.3%”
- HIV product sales: “HIV product sales increased 12% to $5.7 billion in the second quarter 2026 compared to the same period in 2025, primarily driven by higher average realized price and demand.”
- Biktarvy: “sales increased 7% to $3.8 billion in the second quarter 2026 compared to the same period in 2025, primarily driven by higher average realized price, favorable inventory dynamics and higher demand.”
- Descovy: “sales increased 48% to $967 million in the second quarter 2026 compared to the same period in 2025, primarily driven by higher average realized price and demand.”
- Yeztugo: “Yeztugo | U.S. | 223 | 15 | 382 | 15 Europe | — | — | — | — Rest of World | 9 | — | 16 | — 232 | 15 | 397 | 15”
- Trodelvy: “sales increased 26% to $457 million in the second quarter 2026 compared to the same period in 2025, primarily driven by higher demand.”
- Liver Disease portfolio: “The Liver Disease portfolio sales increased 10% to $877 million in the second quarter 2026 compared to the same period in 2025, primarily reflecting higher demand for Livdelzi”
- Livdelzi: “Livdelzi | U.S. | 147 | 74 | 261 | 114 Europe | 20 | 4 | 39 | 4 Rest of World | — | — | — | — 167 | 78 | 300 | 118”
- Cell Therapy: “Cell Therapy product sales decreased 14% to $417 million in the second quarter 2026 compared to the same period in 2025, reflecting ongoing competitive headwinds.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $7.8B | +10.2% | +12.1% |
| Operating income | -$10.4B | — | — |
| Net income | -$10.5B | — | — |
| Diluted EPS | -$8.45 | — | — |
| Free cash flow | $3.4B | +376.8% | +41.5% |
| Operating margin | -133.2% | −168.1 pts | −170.4 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Product sales (millions) | full year 2026 | $30,100 | $30,400 |
| Product sales excluding Veklury (millions) | full year 2026 | $29,800 | $30,100 |
| Veklury sales (millions) | full year 2026 | ~ $300 |
| GAAP diluted loss per share | full year 2026 | $(3.75) | $(3.40) |
| Non-GAAP diluted loss per share | full year 2026 | $(0.65) | $(0.30) |
| Non-GAAP projected product gross margin | full year 2026 | ~ 87.0% |
| Non-GAAP projected operating income (millions) | full year 2026 | $2,900 - $3,300 |
| Non-GAAP projected effective tax rate | full year 2026 | ~ 140% - 115% |
| Quarterly dividend per share | third quarter of 2026 | $0.82 per share |
Key takeaways
HIV growth drove the base business
HIV product sales increased 12% to $5.7 billion, with Descovy up 48% to $967 million and Biktarvy up 7% to $3.8 billion. Yeztugo contributed 232 million in the quarter, compared with 15 a year ago.
Acquired IPR&D charges caused the loss
Acquired IPR&D expenses were $11.2 billion, primarily $7.0 billion for Arcellx, $3.1 billion for Tubulis and $1.0 billion for Ouro Medicines. These charges drove a $(9.08) per share impact.
Full-year base business guidance was raised
Product sales excluding Veklury guidance is now $29,800 to $30,100 million, previously $29,400 to $29,800. Veklury is now expected at about $300 million, previously about $600 million.
Cash fell sharply after acquisitions
Cash, cash equivalents and marketable debt securities were $3.2 billion as of June 30, 2026, versus $10.6 billion at December 31, 2025. Year-to-date acquisition outflows were $11.3 billion.
Oncology and cell therapy diverged
Trodelvy sales increased 26% to $457 million, and it received FDA approval for first-line mTNBC. Cell Therapy sales decreased 14% to $417 million amid competition.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $7.6B * |
| Q1 2025 | $6.7B |
| Q2 2025 | $7.1B |
| Q3 2025 | $7.8B |
| Q4 2025 | $7.9B * |
| Q1 2026 | $7.0B |
| Q2 2026 | $7.8B |
| Q3 2026 | $8.3B |
Data
| Q1 2025 | $1.04 |
| Q2 2025 | $1.56 |
| Q3 2025 | $2.43 |
| Q1 2026 | $1.61 |
| Q2 2026 | -$8.45 |
| Q3 2026 | $1.94 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 32.4% |
| Q1 2025 | 33.6% |
| Q2 2025 | 34.9% |
| Q3 2025 | 42.8% |
| Q4 2025 | 25.0% |
| Q1 2026 | 37.2% |
| Q2 2026 | -133.2% |
| Q3 2026 | 41.7% |
Data
| Q4 2024 | $2.8B |
| Q1 2025 | $1.7B |
| Q2 2025 | $720.0M |
| Q3 2025 | $4.0B |
| Q4 2025 | $3.1B |
| Q1 2026 | $2.4B |
| Q2 2026 | $3.4B |
| Q3 2026 | $4.8B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Gilead's headline results for Q2 2026?
Total revenues increased 10% to $7.8 billion, while diluted loss per share was $(8.45) and non-GAAP diluted loss per share was $(6.75). The loss reflects $(9.08) per share of acquired IPR&D and tax expenses tied to recent acquisitions.
Why did Gilead report a loss despite revenue growth?
Acquired IPR&D expenses of $11.2 billion for the Arcellx, Tubulis and Ouro Medicines acquisitions, plus a $1,750 million IPR&D impairment related to Immunomedics assets, pushed operating loss to $(10,394) million. Those charges were largely non-deductible, so the effective tax rate was (2.4)%.
Which products drove growth?
HIV sales rose 12% to $5.7 billion, including Descovy up 48% to $967 million and Biktarvy up 7% to $3.8 billion. Trodelvy rose 26% to $457 million, and the Liver Disease portfolio rose 10% to $877 million.
How did Gilead change its 2026 guidance?
Product sales excluding Veklury guidance rose to $29,800 to $30,100 million from $29,400 to $29,800 million, and Veklury was cut to about $300 million from about $600 million. Non-GAAP diluted loss per share is now $(0.65) to $(0.30), versus a prior $(1.05) to $(0.65).
What is Gilead's cash and capital return position?
Cash, cash equivalents and marketable debt securities were $3.2 billion at June 30, 2026, versus $10.6 billion at year-end. In the quarter Gilead generated $3.6 billion of operating cash flow, paid dividends of $1.0 billion and repurchased $355 million of stock.
Documents
SEC filing